Sat Jan 18 08:59:23 UTC 2025: ## Argentina Achieves First Budget Surplus in Over a Decade Under Milei’s Austerity Measures
**Buenos Aires, January 18, 2025** – Argentina’s government announced its first budget surplus in 14 years, a feat attributed to President Javier Milei’s controversial austerity program. The surplus, equivalent to 0.3% of GDP, follows a year of drastic measures including a 52% devaluation of the national currency, the dismissal of over 33,000 public sector workers, and significant cuts to state subsidies.
Milei, a self-described anarcho-capitalist, campaigned on a platform of slashing public spending to curb inflation. While his policies have indeed nearly halved inflation from 211.8% to 117.8%, they have also triggered a recession and pushed an additional five million Argentinians into poverty during the first half of 2024, sparking widespread protests.
Economy Minister Luis Caputo hailed the surplus as a testament to the success of the reform program, describing it as a surprise to the world. Milei himself celebrated the achievement on Instagram, declaring the “zero deficit” a reality. However, critics point to the significant social cost, with tens of thousands taking to the streets to voice their discontent.
Despite the economic hardship, the government forecasts a 5% GDP growth in 2025. Milei, a known admirer of Donald Trump, will attend Trump’s inauguration next week and is also slated to negotiate a new loan agreement with the International Monetary Fund (IMF), whose current $44 billion loan program expires at the end of December. The success of these negotiations will be crucial for Argentina’s future economic stability.
First Piper 